BERLIN—Germany’s Olaf Scholz is on course to succeed Angela Merkel as chancellor after the victors of the September election reached a policy agreement focused on overhauling the country’s economy, investing in infrastructure and combating climate change, people involved in the negotiations said.
Under the policy program—which Mr. Scholz’s center-left Social Democrats, the environmentalist Greens and the pro-business Free Democratic Party are set to unveil on Wednesday afternoon—the country’s first three-party coalition would also aim to update the country’s patchy digital infrastructure and drive greater integration of the European Union.